Games more aimed at xcloud/mobile aren't they just mobile games that you get from the mobile store already.Hardware would be a business Microsoft does not want to enter.
Software wise, with Xcloud and gamepass that does open up more realistic options to develop slower games that would fit the handheld or casual niche. They would be regular games but from inception and design they could be targeting that use case more than the 4k living room tv.
It will be interesting to see if Microsoft develop more gamepass specific content to broaden the spectrum of the service.
Isn't xcloud supposed to be console games on your mobile device (or laptop/tv etc)?
In terms of games that aren't twitch based and less latency sensitive, they should just come as part of rounding out the portfolio as they are also games people want to play on 4k tvs.